Amer. Hospital Hit With Suit

U.s. Accuses It Of Violating 1981 Ftc Order

October 01, 1985|By Sally Saville Hodge.

American Hospital Supply Corp. was charged Monday in a civil suit with violating a 1981 Federal Trade Commission order involving the purchase of companies that manufacture or sell urological catheters.

The suit, filed by the Justice Department in U.S. District Court here, contends that American Hospital violated the FTC`s prohibition by acquiring an interest between 1981 and 1983 in eight companies that manufacture or sell such medical equipment.

According to an American Hospital spokesman, the companies involved include seven small dealers of a retail chain of durable medical equipment, and a surgical supply house in Texas.

The suit also said American Hospital had agreed in 1981 that it would refrain from purchasing more than 1 percent of the stock of any company engaged in the urological catheter business.

``We did not violate any of the terms of the FTC consent decree,`` said Thomas A. Dumit, American Hospital general counsel. ``We have conducted our business within the constraints of the decree and with the highest legal and ethical standards and we are prepared to demonstrate our compliance in court.``

The American Hospital spokesman said the company has yet to see a copy of the complaint, so it can`t respond in detail to the specific charges. He added that the companies in question do such a small amount of business in urological catheters that the products were not even mentioned among their assets when they were acquired.